The Electricity Act, 2003 is an Act of the Parliament of India enacted to transform the power sector in India. The act covers major issues involving generation, distribution, transmission and trading in power.
The Act provides for Electricity Regulatory Commissions at both the central and state levels (CERC and SERCs). Functions of these Commissions include:
regulating and determining tariff,
issuing licenses for transmission, distribution, and electricity trading, and
adjudicating upon disputes, within their respective jurisdiction.
Section 3 (4) of the Electricity Act, 2003 requires the Central Electricity Authority (CEA) to frame a National Electricity Plan once in five years and revise the same from time to time in accordance with the National Electricity Policy.
Also, section 73 (a) provides that formulation of short-term and perspective plans for development of the electricity system and coordinating the activities of various planning agencies for the optimal utilization of resources to sub-serve the interests of the national economy shall be one of the functions of the CEA.
The Plan prepared by CEA and approved by the Central Government can be used by prospective generating companies, transmission utilities and transmission/distribution licensees as reference document.
